How to buy gold for your IRA?

northcoin

It seems that the promoters of buying gold for your IRA have a pretty hefty premium for the services of a management custodian as well as the fact that their prices on the allowable coins (modern U.S. gold) are higher than I can purchase the same coins from Tulving or one of the others who operate on a minimal mark-up. Is there anyway I can buy the coins directly and be my own custodian and not have to pay outrageous fees to some trust company to hold the coins for me where I can't even see them?

truthteller

It is my understanding that certain gold coins, such as AGE and ASE in proof and UNC can be maintained in an IRA account. However, the physical coins must be held separate from your ability to access them. I would call AMARK since they deal with these accounts on a regular basis for a small premium. They have a website www.amark.com and ask for the IRA accounts.

TRUTH

supercoin

You might also first ask yourself if it makes sense to buy gold within what is usually a long-term tax-sheltered account, given gold's dismal long-term performance, and the inability to access it as a disaster hedge, but... if you still want to, you might want to look into a "tangible asset" mutual fund. I'm not sure how the overall fees would compare, but you could buy it from a standard brokerage account so that would help.

By the way, the most efficient way to buy/sell gold that I am aware of is through gold futures contracts, but I don't know any place that allows you to do those within an IRA.

jom

Of course, you can also say it is best to hold income generating assets and short term assets in an IRA. Why? Because when you take the money out of the account when you are 59 it will be counted as INCOME and not a Captial Gain. Therefore, it is at least questionable that you would want to hold a LONG TERM asset in an IRA and miss out on the long term capital gain tax...which in most cases is less than tax on income.

jom

EDIT: BTW, it is perfectly legal to buy AMERICAN bullion products in your IRA. You can NOT, however, buy collectables. You will get HAMMERED by the IRS if they find out.

Cameo CC

My understanding of this is that you notify the IRA that you desire to make the purchase. The person (or company) you buy the coins from then produces a invoce and a picture of the coins with serial numbers. This is sent to you or directly to the IRA. You then forward the invoice and photo's of the coins to the IRA. The IRA then issues a check (to the person or company) for the purchase and the person (or company) sends the coins to the IRA, who keep the coins for you.

Todd

supercoin

jom, I agree, but either way, I don't think it make sense to put gold there

If you're holding gold long-term, your capital gains are likely to be minimal (low tax rate, and little gain, if history is any guide).

If you're doing short-term trading on gold, the process and fees would make it too cumbersome to deal with physical gold in an IRA. Better to trade something else related to gold in your IRA, or do your trading outside your IRA.

Outside your IRA you could more efficiently buy physical gold, or better yet trade gold futures which have favorable tax treatment for short-term trading.


Todd, I'm not sure what you're referring to, it's my understanding only modern bullion American Eagles are allowed in IRAs. Has that changed?

Cameo CC

Supercoin - You are right only US bullion coins are allowed.

One area of concern is the certified coin. Does a certified coin qualify as a bullion coin? This is a debate.

In my experience it does, but others disagree and I understand their viewpoint. There viewpoint is that a certified coin is a collectable coin and does not fall under the bullion description.

Todd

paigowjohnny

If you want gold in your IRA, get a gold mutual fund or gold stocks like Barrick's or Placer Dome.

Personally I wouldn't put gold in an IRA. To make money in gold, you gotta be a trader...and I always look at my IRA as a long term capital builder that I don't have to keep farting with.

jom

Superman: I never said it was a good idea...just pointing out some tax traps.

Yeah, I think if you really want to have some "gold" by one of those mutual funds. I'm pretty sure I wouldn't as everytime I look at "best of funds" type magazines the gold funds are more often than not big losers....

jom

paigowjohnny

If I had any guts...I'd go short gold. Nice coins...nice jewelery...lousy investment.

roadrunner

Supercoin is right on the potentially risky long term prospects of gold (or for that matter any other!) "investment" stuck in an IRA. This includes stocks too. The # of IRA's and 401K's has skyrocketed since the stock boom of the 1980's started. But let's not forget that stocks took 25 years to recover from the 1929 crash, and then languished again from 1966 to 1982. The highs of 1929 were once again touched upon in the later 1980's. If you're going to be buying gold YOU need to have physical possession of it and the ability to cash out when you choose.

IRA's should be available for 3-5 years or any other length of one's choosing. But that would make sense....and it not's gonna happen in our lifetimes. The book is once again being rewritten on how America invests for retirement. In 10 years from now, the sage retirement advice of the 80's and 90's will probably be looked upon as gross negligence. Remember, if almost everyone is recommending one basic way to do it, it's got to be wrong. What worked for the past 20 years will probably not work for the next 20 years. We've been there......and done that. Just MHO.

roadrunner

Higashiyama

Roadrunner -- "The book is once again being rewritten on how America invests for retirement"

Yes, I absolutely agree, but also point out that a few fundamentals never change, such as (1) save alot, (2) diversify, (3) no matter what your age, continue to learn and invest in your own skills, and (4) do everything within your power to stay healthy.

roadrunner

Higashiyama,

I agree whole heartedly. Well maybe. The diversification thing has always sort of bothered me a little. At least when you are "diversified" into "typical" financial vehicles. I sort of like the bear market package being touted by Robert Gordon. That includes hedge funds, reverse index funds, gold stocks, gold and silver bullion, and secure treasuries. Now where can I find a convenient IRA that is made up along those lines?? mmmmmmmmm??

roadrunner

MrKelso

Some of my family members have been using "Church Trust" and they have been doing well over the last 5 or 6 years. I don't know anything about them but maybe you can do a google search and find them on the web.